Apple has overtaken Samsung as the world's top smartphone supplier, according to a report from the International Data Corporation (IDC). As this is the first time since 2010 that a business other than Samsung has occupied the top spot, it also represents Apple's first-ever #1 ranking.
As per the report by IDC, Apple witnessed growth in phone sales in 2023, even though there was a 3.2% overall decline in global smartphone shipments. A strong second half in 2023 suggests a general market recovery in 2024, even though IDC reports that this was the lowest annual total of smartphones sold in a decade. A rise of 8.5% year over year and 326.1 million shipments occurred in the fourth quarter (4Q23).
Nabila Popal, research director with IDC's Worldwide Tracker team, states that Apple has emerged victorious in the second half of 2023, "despite some strong growth from low-end Android players like Transsion and Xiaomi, stemming from rapid growth in emerging markets."
Not only is Apple the only company among the top three to exhibit yearly growth, but it also takes the top spot for the first time ever. All of this is true even though it is dealing with more regulatory obstacles and fresh Huawei competition in China, its biggest market. The growing trend of premium devices, which currently account for over 20% of the market and are supported by aggressive trade-in offers and interest-free financing plans, is largely responsible for Apple's continued success and resiliency, Popal adds.
For what it's worth, the market for cameras has also followed this trend toward higher-end, more costly gadgets. Higher average prices can counteract declines in unit sales when examining total revenue. The flagship smartphones, the iPhone 15 Pro and Pro Max, are incredible gadgets, as PetaPixel has personal experience with.
According to Ryan Reith, group vice president of IDC's Worldwide Mobility and Consumer Device Trackers, "the overall shift in ranking at the top of the market further highlights the intensity of competition within the smartphone market." Samsung's decline in ranking was undoubtedly influenced by Apple, but the Android market as a whole is becoming more diverse. Huawei is returning to China and expanding rapidly. Very competitive devices in the lower end of the high end are being released by brands such as OnePlus, Honor, Google, and others. Additionally, foldable smartphones and more conversations about AI capabilities on smartphones are becoming popular. In general, a very interesting period is approaching for the smartphone industry.
When comparing market share to year-over-year growth in unit sales, Apple saw growth of 3.7% from 2022 to 2023, while Samsung's shipments fell by a considerable 13.6%. It will be interesting to observe if Samsung's trend is reversed in 2024 by the new Galaxy S24 devices.
While many companies, including Samsung, saw a decline in shipments last year, which accounts for the 3.2% overall decline in smartphone shipments in 2023, Apple's positive growth is eclipsed by Transsion, a relatively new player, which saw a growth of 30.8%.
Will Apple be able to maintain its top spot or will it be a one-year wonder, with Samsung launching its Galaxy S24 smartphones today and smaller but important players like OnePlus, Huawei, Xiaomi, and Oppo ready to make waves this year?
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